Burger King enters into new partnership to grow in SP
Valor Econômico
American multinational Burger King, the main international rival of McDonald's fast food restaurants, entered into an agreement with a second group of investors (master franchisee) in São Paulo, which will allow the hamburger chain to accelerate its expansion in the State. The agreement was executed with De Nadai, a supplier of food services for companies. Founded in 1977, De Nadai has 1.5 thousand employees and serves from oil platforms and bioenergy plants to schools, hospitals and contact center companies.
So far, the only Burger King's master franchisee in the State of São Paulo was BGK do Brasil, a company controlled by the cattle farmer Luiz Eduardo Batalha, but who has other nine partners. BGK currently operates 30 restaurants in the capital and in the State of São Paulo and was responsible for the opening of the first Burger King in Brazil, in November/2004.
Claudio Arcuri, Burger King Corporation officer responsible for the franchising operations in Latin America, denies that the contracting with second master franchisee in São Paulo is associated with corporate problems in relation to BGK do Brasil. "There is a huge space to be taken in São Paulo and the market is big enough for the coexistence of both master franchisees, BGK do Brasil and De Nadai", affirms Arcuri.
Arcuri estimates there is potential for 200 Burger King restaurants only in the State of São Paulo, which will require major investments. It is too big a number for only one master franchisee, explains the officer. With De Nadai, the purpose is to speed the opening of units. "Look! BGK do Brasil opened 30 restaurants in 55 months of operation. It is a good average. And, this year, all the companies stepped on the break", said Arcuri. In Brazil, the fast-food chain currently has 68 restaurants, in 14 States and 38 cities. In Mexico alone there are 420 Burger King branches.